Tuesday, 7 March 2017

2 Fundamental Reasons why you should not miss this Stock Rally in 2017!!!

Dear Friends,

Recently the stock market rally has been great! STI ran from 2763 to 3158 in a matter of 4 short months. We believe that fundamentally there are 2 reasons behind this rally.

Reason 1: US printing money again!!!

If some of you noticed, Donald Trump recently announced that he will ask Congress for a $1 Trillion dollar infrastructure bill.1 TRILLION DOLLARS is by the way a lot of money!!! US being one of the most indebted nations in the world, surely is not digging into their cash reserves to cough out the money.

The only way is to PRINT!

If congress really pass through this bill, it would be like the 4th QE package US has ever since the Lehman Brothers collapse in 2009.

History has shown that when US prints money, the optimism will push the stock market for at least 6 months.

That means the market can't drop if congress approves!

2017 now looks optimistic given this Printing Money Promise.

Reason 2: China GDP has bottomed!

China started to print money also in 2014 and we are finally seeing the bottoming of China GDP last year! That was in fact what we predicted last year.